Saturday, April 11, 2015

102. Philippine REPLACEMENT Banknote or STARNOTE

Unlike coins each banknote is unique as it has its very own
serial number that can never be repeated.If banknote is damaged during the printing process it needs to be
replaced.Since the printing process has
become very efficient only a very small number of banknotes require
replacement, making replacement banknotes rare.

Replacement banknote is printed as a separate printing run
to replace banknotes damaged during the printing process.They are printed consecutively in a very
small printing run usually with star like symbol prefix in front of the serial
numbers.The replacement banknotes are
inserted into the paper money bundle replacing the damaged and discarded
banknote.

Banks do this to avoid reprinting banknotes with the same
serial number and to ensure the number of banknotes printed remain the same
throughout the printing process. Since banknotes should have unique serial
numbers, replacement notes have their own unique serial numbers.

Some countries have different standards in marking
replacement notes. The most popular method is to use a star either before or
after the serial number. Notes with this symbol are usually called “star
notes”. Earlier Philippine banknotes used the star symbol but in the 1960’s it
was changed to an asterisk symbol.

These replacement notes sell for a higher premium than the
face value. Banks usually reserve some star notes for local coin dealers and
people who know the rarity of these banknotes usually keep them.